(News of The South) – Latest news from Malaysian Airline System Bhd, the carrier whose jet was shot down over Ukraine last week states that a presentation of the turnaround plan will be made avaialable this week to the government fund that controls it.
The proposals presented to majority owner Khazanah Nasional Bhd. will include taking the company private or allowing it to go bankrupt and then renegotiating union contracts, said one of the people, who asked not to be named as the information is private. Khazanah, Malaysia’s sovereign wealth fund, owns 69.4% of the carrier.
So far 537 have lost their lives and two planes in a short time of four months and the future of Malaysian Airline now hangs in the balance.
It is estimated that the airline only has funds to last a year.
“They don’t have the luxury of time anymore,” said Mohshin Aziz, an analyst at Malayan Banking Bhd. in Kuala Lumpur. “Malaysian Air doesn’t have a huge balance sheet, it’s still struggling from perception issues. We will probably see drastic measures.”
298 people perished when flight 17 en route to Kuala Lumpur from Amsterdam was shot down last week.
Pro Russian rebels in Ukraine`s eastern parts have been blamed for the tragedy.
Asuki Abas, a spokesman for Khazanah, couldn’t immediately be reached on his mobile phone for comment. The Wall Street Journal reported on Sunday that Khazanah was increasingly leaning toward taking the carrier private, citing unidentified people.
“Our focus during this very challenging time is to work with the emergency responders and authorities and mobilise full support to provide all possible care to the family members of
Before the disappearance of Flight MH370, Malaysian Air had racked up 4.13 billion ringgit ($1.3 billion) in losses over the previous three years.
The missing flight has now put the carrier under global scrutiny, jeopardising its reputation and prompting boycotts in China.
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